The Very Group has announced it has extended and renewed key debt facilities which will secure long-term funding to 2029.

The group, which owns and operates the Very and Littlewoods brands, said that the refinancing significantly strengthens its capital structure and leaves the business well positioned for the next stage of its growth.

As part of the refinancing, completed under US-based owners Carlyle, all note classes within The Very Group’s UK securitisation facility have been extended, with maturities extended to 1 February 2029.

The Group’s UK securitisation facility, which totals £1.77bn, has now been operating for over two decades.

In addition, the Group said its £150 million super senior revolving credit facility has been renewed, with its maturity extended to February 2030.

Following the fulfilment of the deleveraging condition set out in the terms of the Group’s senior secured notes, the notes’ coupon rate has been lowered from 13.5 per cent to 9.75 per cent and maturity has been extended from August 2027 to August 2030.

The Group’s overall debt has been reduced by £150 million with Carlyle’s capital support, which the company said is expected to be positively acknowledged by rating agencies.

Edward Fry, chief financial officer at The Very Group, said that securing the long-term funding reflects the confidence of lenders in the strength of the business.

“The combination of extended maturities, improved margins and further deleveraging provides a stable platform for continued investment in our digital and customer proposition, while maintaining a disciplined approach to balance sheet management,” he added. “The £150 million capital support from Carlyle is a reflection of their strong and ongoing support for the business.

“This leaves us in a robust financial position and well placed to support future growth.”

In November last year, US investment firm Carlyle became the controlling shareholder of The Very Group, drawing a close to more than two decades of ownership by the Barclay family.

At the time, Carlyle reportedly injected several hundred million pounds into the capital structure to secure ownership.

---